Prominent asset management industry figure Todd Ruppert has invested into Nutmeg.com, the online discretionary wealth manager recently launched to provide low-cost services as the UK market wrestles with more regulatory costs.

The exact financial size of Ruppert’s stake in the business was not disclosed. Ruppert is founder and chief executive of RTR International and a former board member and president of investment services at T Rowe Price International.

The investment is the only one of its kind in a UK financial services company that Ruppert has made, a statement from the firm said.

“UK retail investors are currently underserved and mis-served and consumer trust needs to be restored by services such as this,” he said in a statement.

The online service has been introduced as UK financial advisors and wealth managers deal with the impact of the Retail Distribution Review programme of reforms, which came into force in January.

Other investors include Tim Draper, an early investor in Skype and Hotmail, Daniel Aegerter, the Swiss chairman of Armada Investment Group, Pentech Ventures, and Klaus Hommels, a board member of Spotify, the online music portal.

Nutmeg.com was set up by Nick Hungerford and William Todd. Management fees are 1 per cent or less; loyalty is rewarded by lowering the management fees, which can be reduced to as low as 0.3 per cent, and a portfolio can be as low as £1,000 ($1,507).